Arbeitspapier
Financial Transaction Tax and Financial Market Stability with Diverse Beliefs
This papers studies the impact of a financial transactions tax on the trading volume and asset price volatility in a model with heterogeneous beliefs. To model heterogeneous beliefs we follow Kurz (1994, 1997) and restrict the class of beliefs to the subset of rational beliefs. We study a tax on bond and asset purchases. The simulated model shows that the introduction of a transaction tax results in a lower trading volume and therefore in less liquid financial markets. Because of the decreased liquidity the volatility of the stock market increases. We also study the welfare effects of a financial transaction tax and the simulation results also show that there is only a small change in welfare.
- Sprache
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Englisch
- Erschienen in
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Series: Discussion Paper Series ; No. 563
- Klassifikation
-
Wirtschaft
- Thema
-
Transaction Tax
Financial Regulation
Heterogeneous Beliefs
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Rieger, Jörg
- Ereignis
-
Veröffentlichung
- (wer)
-
University of Heidelberg, Department of Economics
- (wo)
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Heidelberg
- (wann)
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2014
- DOI
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doi:10.11588/heidok.00016804
- Handle
- URN
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urn:nbn:de:bsz:16-heidok-168044
- Letzte Aktualisierung
-
10.03.2025, 11:43 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Rieger, Jörg
- University of Heidelberg, Department of Economics
Entstanden
- 2014
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